Foreign Investors Rush into Pakistan
Foreign investors rush into Pakistan, with 200% Increase in first half of the year |
This year, Pakistan has seen unprecedented foreign income.That is the reason that Foreign Investors Rush into Pakistan. Global investors bought 1-year bonds for $ 642 million in November alone.
The record is expected to reach $ 3 billion by the end of the financial year as investors are lured by high interest rates and promises of economic recovery.
Foreign direct investment increased 200% in the first half of 2019, according to Prime Minister Imran Khan’s financial adviser Abdul Hafeez Shaikh. Which clearly indicated that the Foreign Investors Rush into Pakistan.
Stocks have also increased, Karachi stock index has increased 13% in the last month. The best performing stock exchange out of the 94 earned by Bloomberg.
Robertson added that even a few percent reduction in the central bank rate would make Pakistan attractive. “Pakistan’s current policy choices provide the country with the best opportunity for sustainable development. The cost of borrowing from foreign investors to buy public debt is low.
Central bank data shows that 55% of the 1-year papers purchased in November were from the UK and 44% were from the United States.
Moody’s upgrades Pakistan’s outlook to B3 ‘Stable’ from ‘Negative’. The upgradation of outlook to Stable is affirmation of Government's success in stabilising the country’s economy and laying a firm foundation for robust long term growth.
— Dr. Abdul Hafeez Shaikh (@a_hafeezshaikh) December 2, 2019
Habib Bank CEO Mohammad Aurangzeb said Pakistan plans to issue $ 1 billion worth of ‘panda bonds’ in the Chinese market. It will be for the first time in the yuan. Panda Bond is a Chinese renminbi-denominated bond of non-Chinese issuers sold in China.
This week, Moody’s upgraded Pakistan’s credit outlook from negative to stable, stating that the financial situation of Pakistan is on the path to improvement. It also expressed its hope that with the help of the International Monetary Fund (IMF) it would reduce the risks to its economy. In Last month, Islamabad received another installment from the IMF as part of a $ 450 million loan package.
Their experts said that the country’s economic recovery reduces the “risk of external threats”. But they also warned that “foreign exchange reserves remain low and it will take time to rebuild.”